City's possible Midtown property sale could boost...

1of2The proceeds of the sale of this property ﻿near the METRORail red line ﻿will likely go to neighborhood redevelopment and transformation into a "superblock."Photo: Gary Coronado, Staff

2of2After decades of decline, the Houston ISD has seen a recent increase in the number of white students.

The long-awaited transformation of an empty Midtown block into a vibrant blend of retail, residential and park space could get a boost from the possible sale of a nearly 50-year-old building nearby.

PM Realty Group confirmed this week that it is under contract with the Midtown Redevelopment Authority to purchase property at 3300 Main, and City Council on Wednesday cleared the way for that sale by waiving the city's deed restriction on the site. The funds from the sale will go to improvements in the Midtown neighborhood, sandwiched between downtown and the Museum District.

PM Realty Group would not elaborate on its plans for the site, and the Midtown Authority officials redirected calls to a public relations firm, which did not respond to questions Wednesday.

Developer Ric Campo, whose Camden Property Trust has purchased large swaths of land in Midtown for more than a decade, said any sale would be a "major boost" for the area.

"Really, it's just a further validation that Midtown is going to be very transformed during the next three years," Campo said.

The deal dates back to 2011, when the city chipped away at a $21 million budget gap by selling the low-slung former code enforcement building to the Midtown Redevelopment Authority, which oversees the local tax increment reinvestment zone. Within a TIRZ, revenues from increased property values are set aside for public improvements outlined in the zone's project plan.

The $5 million sale came with a caveat: If the Midtown group ever sold the property for more than the sale amount, the city would collect those proceeds. City officials said the deal was intended to prevent the Midtown group from immediately flipping the 1.16-acre property.

The sale has not been finalized, and city officials said they did not have an estimate on the price, but last spring a broker said the building is worth more than what Midtown paid in 2011.

Deed restriction waived

On Wednesday, City Council voted unanimously and without discussion to waive that deed restriction, dedicating any sale proceeds to council-approved projects in Midtown rather than sending the money to the general fund, which faces a $120 million shortfall next fiscal year. That means the city's net proceeds could go to projects like Midtown's ambitious, highly anticipated "superblock," 6 acres of land undivided by cross streets.

Various plans for a park, 400-car parking garage, apartment building and retail space there have been on the table for more than a decade, as vacant lots have given way to a crop of restaurants, apartments and shops in the area. That revitalization and Houston's 2017 Super Bowl have reignited interest in the superblock concept, long considered an anchor for the area's future.

"People talk about it with the acronym 'BTS,' or 'before the Super Bowl,'" said Campo, chairman of the city's Super Bowl bid and owner of much of the superblock land. "It shines a light on the city. But from a broader quality of life perspective, too, you see projects like the superblock that will be great for the area past the Super Bowl."

Camden is loaning the Midtown TIRZ funding for the underground garage, which will also offer parking at the roughly 300-unit, eight- or nine-story apartment building that the company will build on the southern portion of the superblock. Above the garage, the TIRZ is planning a 3-acre park with water features, a stage and play areas.

The park, parking garage and restaurants are expected to be done in time for the 2017 Super Bowl.

'Strategic property'

Another major project in the area, right next to 3300 Main, is the planned 59,000-square-foot Midtown Arts & Theater Center Houston - MATCH.

Jill Jewett, MATCH project manager, said she'd like to see the 3300 Main property include retail space that encourages people to walk inside.

"It's pretty incredible that in this fairly short stretch of Main Street you're going to see a wonderful park, more choices in living spaces, an arts center and all these new amenities," Jewett said.

Ed Wulfe, chairman of the Main Street Coalition and a developer, said the 3300 Main property is key to connecting the mosaic of projects in the area.

"That is a very strategic property, and it's been underutilized for years," Wulfe said. "It's a very vibrant area right at the forefront of development."